Accumulate Route Mobile; target of Rs 2585: Arihant Capital

Accumulate Route Mobile; target of Rs 2585: Arihant Capital

Arihant Capital recommended accumulate rating on Route Mobile with a target price of Rs 2585 in its research report dated October 19, 2021.







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October 19, 2021 / 02:54 PM IST





Arihant Capital's research report on Route Mobile

Route Mobile Limited reported strong set of numbers in Q2FY22 and were above our estimates on all front. Revenue from operation grew by 24.7% YoY & 15.4 % QoQ to INR 4357 mn above our estimate of INR 4152 mn. UK was the top contributor in the company's overall revenue followed by India, Dubai, Nigeria and others. The company's segment revenue from the UK stood at INR 2918 mn India contributed INR 1059 mn, Dubai INR 637 mn, Nigeria 293 mn and othersINR 106 mn EBIDTA grew by 34% YoY and 23% QoQ to INR 561 mn above our estimate of 477 mn EBIDTA margin expanded by 91 bps YoY & 82 bps QoQ to 12.9% Healthy top line growth coupled with better operational efficiency led to expansion in margin. Reported PAT grew by 28.7% YoY and 22.7% Q0Q to INR 421 mn above our estimate of 374 mn. PAT margin expanded